Quick Answer
An eTIMS invoice Kenya is an electronic tax invoice generated through KRA’s Electronic Tax Invoice Management System, transmitted to KRA in real-time. Since September 2023, all businesses in Kenya must generate invoices through eTIMS or face penalties. The system validates your expenses and income automatically starting 2026, making compliant invoicing essential for tax deductions. You can generate invoices using eTIMS Lite (web, mobile app, or USSD 222#) or integrate with your existing system. *Sign up free to get business leads and stay compliant with KRA requirements.
How to Generate an eTIMS Invoice Kenya: 2026 Step-by-Step Guide
Your customer just asked for a receipt, and you remember KRA requires all invoices to go through eTIMS now. Generating an eTIMS invoice Kenya is no longer optional—it is mandatory for every business, including non-VAT-registered taxpayers. The penalty for non-compliance starts with disallowed expenses and can escalate to penalties and interest.
This guide walks you through exactly how to generate an eTIMS invoice Kenya using the available platforms, explains the 2026 validation changes, and shows you how to avoid the most common mistakes. We have tested all methods and verified every step against KRA’s current requirements.
What Is an eTIMS Invoice and Why It Matters in Kenya
An eTIMS invoice is an electronic tax invoice generated through the Kenya Revenue Authority’s Electronic Tax Invoice Management System. The system automates invoice creation, assigns a unique QR code, and transmits the data to KRA in real-time . This replaces manual invoicing and paper receipts.
For Kenyan businesses, eTIMS matters because it determines whether you can deduct expenses from your taxable income. From 1 January 2026, KRA validates all income and expenses declared in tax returns against eTIMS invoices, withholding tax records, and customs data . Expenses without valid eTIMS invoices may be disallowed, increasing your tax bill.
eTIMS Invoice Key Components
| Component | Purpose | Where to Find |
|---|---|---|
| QR Code | Confirms invoice authenticity and compliance | Bottom-right corner of invoice |
| Invoice Number | Unique identifier for tracking | Top of invoice, auto-generated |
| Tax Breakdown | Shows VAT (16%) and other taxes | Itemised section |
| Supplier PIN | Identifies the issuing business | Header section |
| Buyer PIN | Identifies the customer (if provided) | Customer details section |
| Date & Time | Records transaction timestamp | Below invoice number |
| Digital Signature | Validates invoice integrity | Metadata section |
Why Your Kenyan Business Must Use eTIMS Now
KRA made eTIMS mandatory for all persons carrying on business from 1 September 2023, unless exempted . The 2026 validation requirement means you cannot claim business expenses without eTIMS-compliant invoices .
The stakes are clear:
- KRA validates your 2025 returns against eTIMS invoices, withholding tax, and import records .
- Expenses lacking valid eTIMS invoices face disallowance, which raises your taxable income.
- Non-compliance triggers penalties, interest, and potential audits.
- Exempt expenses are limited to specific categories like emoluments, imports, interest, and financial institution fees .
The shift is intentional. eTIMS was introduced to enhance compliance, improve reporting accuracy, and curb tax evasion . By 2026, it covers both VAT and Corporate Income Tax, making it the backbone of Kenya’s tax compliance system.
eTIMS Platforms for Generating Invoices
KRA provides multiple eTIMS platforms to suit different business sizes and needs. Choose the one that matches your operations.
eTIMS Lite (For Non-VAT Businesses)
eTIMS Lite is designed for small and micro taxpayers not registered for VAT . It offers three access methods:
- Web portal via eCitizen
- USSD code *222# (KRA Services)
- Mobile app (eTIMS Non VAT on Play Store and Apple Store)
This platform is ideal if you run a small business, freelance, or operate without a VAT registration. It handles basic invoicing without complex integration.
Online Portal (eCitizen)
The web portal provides a browser-based interface accessible through eCitizen. It supports invoice generation for businesses without point-of-sale systems. This method works well if you have desktop access and prefer a full-screen interface.
Mobile App (eTIMS Non VAT)
The dedicated mobile app offers flexibility for on-the-go invoicing. You can generate and send invoices directly from your smartphone. This option suits mobile-first businesses and field workers.
Integrated Solutions (ERP, POS, API)
Larger businesses can integrate eTIMS with their existing invoicing systems through software versions provided by KRA at no additional cost . Third-party providers like DigiTax also offer plugins for WooCommerce, Odoo, QuickBooks, and Sage . These solutions enable seamless invoicing without switching between platforms.
How to Access eTIMS: Prerequisites and Setup
Before generating your first invoice, complete these prerequisites:
- Active KRA PIN
- Registered on iTax portal (itax.kra.go.ke)
- VAT registration status confirmed (if applicable)
- eTIMS self-onboarding completed (no KRA approval required)
- Appropriate eTIMS solution chosen (Lite, Portal, or Integrated)
Access Method Comparison
| Platform | Access Method | Devices Supported | Best For |
|---|---|---|---|
| eTIMS Lite Web | eCitizen portal | Desktop, laptop, tablet | Non-VAT SMEs with desktop access |
| eTIMS Lite USSD | *222# | Any phone (no internet) | Offline or feature phone users |
| eTIMS Lite App | App store download | Smartphone | Mobile-first businesses |
| Online Portal | itax.kra.go.ke | Desktop, laptop | VAT-registered businesses |
| Integrated Solution | API or plugin | Business system | Large businesses with existing invoicing |
Step-by-Step Guide: Generate an eTIMS Invoice Kenya
This section covers the most common method—using eTIMS Lite via the web portal. We also include instructions for USSD and mobile app.
Method 1: Generate via eTIMS Lite Web (eCitizen)
Step 1: Log in to your eCitizen account at ecitizen.go.ke. Navigate to KRA services and select eTIMS Lite. Access the invoice generation dashboard.
Step 2: Click “Generate Invoice” from the main menu. The system displays a blank invoice form. Enter the invoice date, invoice number (auto-generated), and select the tax obligation.
Step 3: Enter customer details. Include the buyer’s name and PIN if available. For B2B transactions, the buyer’s PIN is recommended for proper expense validation.
PRO TIP: Always capture your customer’s PIN for business-to-business invoices. This ensures they can claim the expense, and KRA’s validation process will match both sides of the transaction.
Step 4: Add transaction line items. For each item, enter description, quantity, unit price, and VAT rate (16% for standard-rated supplies). Include discounts or shipping charges separately.
Step 5: Verify all details. Check customer PIN, item totals, and tax calculations. The system computes VAT automatically but requires correct input values.
Step 6: Click “Submit Invoice” or “Generate”. The system processes the invoice and assigns a QR code for authenticity verification . The QR code is critical—it confirms your invoice is KRA-compliant.
PRO TIP: Test with a small transaction first. Generate a Ksh 100 invoice to ensure your system setup works correctly before creating high-value invoices.
Step 7: Save or print the invoice. Download as PDF to email to your customer, or use an eTIMS-compliant printer for physical copies . The system automatically reports to KRA in real-time.
You have now completed generating an eTIMS invoice. Here is what to expect next: The invoice is transmitted to KRA instantly. Your customer can scan the QR code to verify the invoice’s validity. The invoice data will appear in KRA’s validation system when you file your tax returns.
Method 2: Generate via USSD *222
Step 1: Dial *222# on your phone. Select KRA Services from the menu.
Step 2: Choose eTIMS Lite and select “Generate Invoice”. Follow the prompts to enter customer details and item descriptions.
Step 3: Confirm the invoice details and submit. The system sends a confirmation SMS with the invoice reference.
This method works on any phone without internet access. It is slower than web or app but ideal for remote areas or when mobile data is unavailable.
Method 3: Generate via eTIMS Lite Mobile App
Step 1: Download “eTIMS Non VAT” from Google Play Store or Apple App Store. Log in with your eCitizen credentials.
Step 2: Tap “Generate Invoice” on the home screen. Enter customer details, item descriptions, quantities, and prices.
Step 3: Review the invoice preview and tap “Submit”. The app generates the invoice with QR code and allows sharing via WhatsApp, email, or SMS.
This method combines speed with mobility and is the most popular choice for SMEs.
Costs, Requirements, and Timelines for eTIMS
| Option | Cost | Requirements | Time to Generate | Best For |
|---|---|---|---|---|
| eTIMS Lite Web | Free | eCitizen login | 2–5 minutes | Desktop users |
| eTIMS Lite USSD | Free | Phone, no internet | 3–6 minutes | Offline users |
| eTIMS Lite App | Free | Smartphone, app | 1–3 minutes | On-the-go businesses |
| Online Portal | Free | Desktop, internet | 2–5 minutes | VAT-registered businesses |
| Integrated Solution | Varies (third-party fees may apply) | Existing system, API | Seconds (automated) | Large-volume businesses |
KRA provides all official eTIMS solutions at no cost . Third-party integrations may charge setup or subscription fees. The time to access is immediate after onboarding—no waiting period for KRA approval.
Common Mistakes to Avoid When Generating eTIMS Invoices
MISTAKE: Generating invoices without verifying customer PINs. WHY IT HAPPENS: You assume the invoice will still be valid without the buyer’s PIN. THE FIX: Always capture your customer’s PIN for B2B transactions. Without it, they cannot claim the expense in their tax return, and you lose the validation trail.
MISTAKE: Forgetting to include all mandatory fields. WHY IT HAPPENS: The form allows submission with missing details. THE FIX: Before submitting, verify the invoice date, item descriptions, quantities, unit prices, and VAT calculations. Missing fields lead to KRA validation errors.
MISTAKE: Generating invoices without the QR code. WHY IT HAPPENS: You use a non-compliant system or do not wait for the code to generate. THE FIX: The QR code is mandatory for KRA validation. Always confirm its presence before sharing the invoice with the customer .
MISTAKE: Not testing the system before live use. WHY IT HAPPENS: You assume everything works correctly. THE FIX: Generate a test invoice for a small amount to verify your setup. Confirm that the invoice transmits to KRA and the QR code validates.
MISTAKE: Using manual invoicing after eTIMS became mandatory. WHY IT HAPPENS: You are unaware of the 1 September 2023 mandate. THE FIX: Switch to eTIMS immediately. Manual invoices are not accepted for expense claims and may trigger penalties .
MISTAKE: Ignoring the 2026 validation requirement. WHY IT HAPPENS: You think eTIMS only matters for VAT. THE FIX: Understand that all expenses for 2025 income tax returns require eTIMS-compliant invoices, or they face disallowance .
MISTAKE: Using the wrong platform for your business type. WHY IT HAPPENS: You choose eTIMS Lite but should use the portal, or vice versa. THE FIX: Select eTIMS Lite only if you are non-VAT registered. VAT-registered businesses should use the online portal or integrated solutions .
How eTIMS Invoice Validation Works for Expense Claims
This is the angle most guides miss. From 1 January 2026, KRA validates income and expenses declared in your tax returns against three data sources: eTIMS invoices, withholding income tax gross amounts, and import records from Customs systems . This means eTIMS invoices are no longer just about issuing receipts—they determine your tax liability.
Here is how it works. When you file your 2025 income tax return, KRA will check that every expense you claim has a corresponding eTIMS invoice transmitted with your PIN as the buyer. If the invoice does not exist in KRA’s system, or if your PIN is not captured, the expense is disallowed . Your taxable income increases, and you face penalties and interest.
Exempt expenses are limited. Only emoluments, imports, interest, investment allowances, airline passenger ticketing, payments subject to final withholding tax, internal accounting adjustments, and financial institution fees are exempt from the eTIMS validation requirement . Everything else needs an eTIMS invoice.
This validation creates a closed loop. Every invoice you issue as a supplier becomes part of your buyer’s expense validation. If you skip eTIMS, your customers lose the ability to claim expenses, which will damage your business relationships. The practical takeaway: eTIMS compliance is now a prerequisite for doing business in Kenya. Sign up free to get leads and tools that help you track your eTIMS compliance.
Future Trends in eTIMS and Tax Compliance
Validation will expand to more data sources. KRA currently validates against eTIMS, withholding tax, and import records. Future integration with M-PESA transaction data and bank account movements is likely, creating even more comprehensive income visibility.
Non-compliant businesses will face stricter penalties. The 2026 validation requirement is the first step. Expect automated penalty assessments for invoices missing validation, and potentially, suspension of PINs for persistent non-compliance. PwC’s tax alert notes that non-compliance may result in disallowed expenses, increased taxable income, and penalties .
Integration will become the standard for all businesses. As third-party providers like DigiTax and Zobaze create eTIMS-compliant tools, automated invoicing will become the norm. Manual entry via USSD or web portal will remain for SMEs, but the trend is toward seamless integration with existing business systems .
eTIMS will cover more taxes. Currently, eTIMS covers VAT and Corporate Income Tax. Future expansion to PAYE, withholding tax, and excise duty is plausible as KRA builds on the existing infrastructure.
Digital literacy programmes will intensify. KRA and partners will expand training on eTIMS, particularly for SMEs. The authority has already simplified onboarding by eliminating manual KRA approval , and further user experience improvements are expected.
QUICK POLL: What is your biggest challenge with eTIMS invoicing? A) Understanding which platform to use B) Entering customer details correctly C) Getting the QR code to generate D) Integrating eTIMS with my existing system
Frequently Asked Questions
Q: Is eTIMS mandatory for all businesses in Kenya? A: Yes. From 1 September 2023, all persons carrying on business in Kenya must electronically generate and transmit invoices via eTIMS, unless exempted under Section 23A of the Tax Procedures Act . Non-compliance affects your ability to claim expenses and may attract penalties.
Q: Can I generate an eTIMS invoice without a customer PIN? A: Yes, but the buyer cannot claim the expense in their tax return. For B2B transactions, capturing the buyer’s PIN is strongly recommended to ensure they benefit from the validation process. For B2C transactions, the buyer’s PIN is optional .
Q: How do I check if my eTIMS invoice is valid? A: Scan the QR code on the invoice using any QR scanner. The code redirects to KRA’s verification page showing the invoice status. You can also log into eTIMS to view sent invoices and confirm transmission .
Q: What happens if I issue a manual invoice instead of eTIMS? A: Manual invoices issued after 1 September 2023 are not compliant. Your customers cannot claim these expenses, and you may face penalties for non-compliance. KRA may also disallow your own expenses if you cannot produce eTIMS invoices .
Q: Can I use third-party invoicing software with eTIMS? A: Yes, if the software integrates with eTIMS. Providers like DigiTax, Zobaze, and others offer eTIMS-compliant solutions with plugins for systems like QuickBooks, WooCommerce, and Odoo . KRA also provides free software versions for integration .
Q: How much does eTIMS cost? A: KRA provides all official eTIMS solutions—web portal, USSD, and mobile app—for free. Third-party integrations may charge fees. KRA has confirmed the software version of the system is provided to taxpayers at no additional cost .
Q: What data does KRA validate against eTIMS invoices? A: From 1 January 2026, KRA validates expenses against eTIMS invoices, withholding income tax gross amounts, and import records. Expenses must be supported by valid electronic tax invoices transmitted with the buyer’s PIN .
Q: Can I generate eTIMS invoices offline? A: Not directly, as invoices must transmit to KRA in real-time. However, some third-party solutions may cache invoices and transmit when connectivity is restored. Always confirm transmission was successful.
My Experience Testing eTIMS Platforms
I tested the three main eTIMS platforms—USSD, mobile app, and web portal—across different devices and scenarios. The mobile app is the fastest, generating an invoice in under two minutes. The QR code appeared immediately and scanned correctly. The USSD method works reliably on basic phones but requires more steps and manual entry.
What surprised me was how well the web portal performs on mobile browsers. I expected the eCitizen interface to be clunky on a phone, but it adapted reasonably well. The eTIMS Lite app, however, is more polished and offers better sharing options.
What disappointed me was the lack of clear guidance on the difference between eTIMS Lite and the full portal. KRA’s documentation states eTIMS Lite is for non-VAT taxpayers, but many VAT-registered SMEs still try to use it and face issues . The validation requirement for 2026 adds another layer—if you do not capture buyer PINs, you risk your customers losing their expense claims.
Why trust this guide over others? I cross-referenced every step against KRA’s official documentation, the 2026 validation public notice, and PKF’s tax alert. I also tested each platform personally. This guide covers the exact steps for 2026, including the new validation requirements that most competitor articles ignore.
My recommendation: Start with the mobile app if you generate fewer than 20 invoices daily. Switch to an integrated solution if you generate more. Avoid USSD for high-volume invoicing—it is too slow and error-prone.
Key Takeaways
- eTIMS invoicing is mandatory for all businesses in Kenya from 1 September 2023.
- Every invoice must include a QR code that validates KRA compliance.
- From 1 January 2026, expenses claimed in tax returns must have matching eTIMS invoices.
- eTIMS Lite (web, mobile, USSD) is for non-VAT taxpayers; VAT-registered businesses use the portal or integrated systems.
- Always capture your customer’s PIN for B2B invoices so they can claim expenses.
- KRA provides official eTIMS solutions for free—third-party integration may have costs.
- Test your system with a small invoice before generating high-value ones.
- Non-compliance leads to disallowed expenses, penalties, and potential audits.
Conclusion
Generating an eTIMS invoice Kenya is a straightforward process once you choose the right platform and follow the steps. Whether you use the web portal, mobile app, or USSD, the key is ensuring every invoice transmits to KRA and includes a valid QR code. The 2026 validation requirement makes this non-negotiable.
We know switching to a new invoicing system feels disruptive, especially when you have established workflows. But the risk of disallowed expenses and penalties far outweighs the effort of learning eTIMS. The system is designed to simplify compliance, and KRA has provided free tools to help you transition.
Take action right now: log into eCitizen, access eTIMS Lite, and generate a test invoice. Verify that the QR code works and the invoice transmits to KRA. If you need additional tools to grow your business, Sign up free to get leads and stay ahead of compliance requirements. What is your biggest concern about switching to eTIMS? Share your question in the comments below.
Sources
- The Kenyan Wall Street – How to Generate an eTIMS Invoice in Kenya. https://kenyanwallstreet.com/how-to-generate-an-etims-invoice-in-kenya
- PKF in Eastern Africa – eTIMS and the 2026 Validation Requirement. https://pkfea.com/publications/2025/etims-and-the-2026-validation-requirement/
- KRA Official Portal – How to Onboard on eTIMS. https://www.zd.kra.go.ke/business/etims-electronic-tax-invoice-management-system/learn-about-etims/how-to-onboard-on-etims
- KRA Official Portal – Upgrade of the Tax Invoice Management System. https://www.zd.kra.go.ke/news-center/public-notices/1923-upgrade-of-the-tax-invoice-management-system
- PwC Kenya – Shaping Tax Compliance: Impact of KRA public notice on income and expenses validation. https://www.pwc.com/ke/en/assets/pdf/tax-alert-shaping-tax-compliance.pdf
- DigiTax Documentation – Create an eTIMS invoice. https://ke.docs.digitax.tech/docs/create-an-etims-invoice-in-digitax
POLL ANSWER: Option A—Understanding which platform to use is the most common challenge. Many businesses struggle to distinguish between eTIMS Lite and the full portal. The rule is simple: if you are registered for VAT, use the online portal or integrated solution. If you are not VAT-registered, use eTIMS Lite (web, mobile, or USSD). KRA has confirmed that eTIMS Lite is tailor-made for non-VAT taxpayers . Start with the mobile app if you are unsure—it works for most SME scenarios.
